Abstract
Nowadays customisation becomes more common due to vast requirement from the customers for which industries are trying to use make-to-order (MTO) strategy. Due to high variation in the process, workload control models are extensively used for jobshop companies which usually adapt MTO strategy. Some authors tried to implement workload control models, order review and release systems, in non-repetitive manufacturing companies, where there is a dominant flow in production. Those models are better in shop floor but their performances are never been investigated in high variation situations like MTO supply chain. This paper starts with the introduction of particular issues in MTO companies and a general overview of order review and release systems widely used in the industries. Two order review and release systems, the Limited and Balanced models, particularly suitable for flow shop system are applied to MTO supply chain, where the processing times are difficult to estimate due to high variation. Simulation results show that the Balanced model performs much better than the Limited model if the processing times can be estimated preciously.
Highlights
Customization is one of the major challenges faced by most of the high variety-low volume industries [1]
This paper looks at the processes of the MTO companies from the point of the internal supply chain as a whole
Continuing the studies of [7] on order review and release (ORR) systems, which proved to be effective in leaning the processes in non-repetitive manufacturing, two types of ORR systems are applied to the MTO supply chain
Summary
Customization is one of the major challenges faced by most of the high variety-low volume industries [1]. In order to tackle uncertainty in demand, many authors suggested Lean techniques like Kanban containers, etc. Later on some authors tried to adopt Workload control (WLC) techniques like order review and release (ORR) systems for job shop environment. These systems try to absorb the variation in demand and reduces the overall throughput time. The due dates of the orders are met These systems are adopted successfully in many jobshop companies. In MTO companies, orders’ value stream consists of the tendering phase, the design phase, the purchasing phase and the production phase and activities are not restricted only in the shop floor. Dealing only in the shop floor activities will ignore the other parts of the whole flow and important issues like departments’
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